KCC Co.,Ltd.

By using "AI fraud detection" to analyze fraud trends and take countermeasures according to trends, we build brand value and improve customer confidence.

Interview response:
KCC Co.,Ltd. Manager, CS Division, Direct Marketing Department, KSC Corporation

*Service name, department, job title, etc. are information as of August 2022.

Business content

KCC Co.,Ltd. operates multiple Japanese and Western sweets brands, including "Otaru Western Confectionery Store LeTAO," which sells sweets and frozen foods. In terms of e-commerce sales, we have entered not only our own e-commerce site, but also Rakuten Market, Amazon, and LINE Gift, and thanks to you, "Double Fromage" has won first place in the delivery gift ranking on LINE Gift. Due to the impact of stay-at-home demand due to the coronavirus pandemic, the e-commerce business has steadily expanded by 140% compared to the previous year in 2020 and 130% compared to the previous year in 2021. Lutao's sweets were originally in high demand for people who purchased them for themselves and their families, but as people continue to avoid contact with others and are unable to meet people in person, the company has begun to offer products that are a little better than usual. In recent years, the demand for gifts has been on the rise.

Please tell us the background behind the introduction of "AI fraud detection" provided by SB Payment Service.

続 健児さま

We didn't have much knowledge about countermeasures against unauthorized use, and even though sales were on the rise, we were operating our e-commerce site without any precautions. Around the spring of 2021, several million chargebacks occurred in three months, and I felt a sense of crisis and consulted Mr. Nakano of SB Payment Service to see if there were any good countermeasures. Initially, we were considering introducing 3-D Secure, but since many of LeTAO's customers tend to be elderly, we were concerned that customers would be turned away due to problems such as not knowing 3-D Secure password, so we decided not to use ebisumart, which we use. We have decided to implement the advanced plan for AI fraud detection is linked to our company.

What were the effects of introducing "AI fraud detection"?

When we introduced "AI fraud detection" in May 2022, we have had zero chargebacks since then, significantly reducing unnecessary expenses. I also like how easy it is to be able to check the status of each payment in real time on the AI fraud detection management screen. By regularly checking the management screen, analyzing trends in fraud, and taking countermeasures against fraudulent use based on your company's trends in fraud, such as shutting out suspicious access from overseas, your awareness of security will increase. Ta. As a result, this leads to building brand value and improving customer trust. When introducing "AI fraud detection", I was in a state where I didn't know anything about system coordination with ebisumart or the cost, but Mr. Nakano kindly provided support in an easy-to-understand manner, and it took less than two months from considering it. We were able to introduce it quickly. Even after implementation, we have been able to quickly respond when we have a problem, and we plan to continue to improve accuracy through regular tuning such as block rule settings, so we would be reassuring if we could continue to receive advice.

Please tell us about future service development and prospects.

We are working every day to evolve our own e-commerce site to make it easier to use and buy. Due to the rapid expansion of LINE gifts, which are social gifts, due to the coronavirus pandemic, we are one of the first companies in Hokkaido to incorporate social gift functions into our EC site as "LeTAO e-gifts." Social Gift is a service that allows you to easily send gifts to people you don't know their address via LINE, SNS, email, etc. In the future, we would like to attract younger people by simplifying membership registration and screen transitions. By building our own social gift know-how and leading the way, we would like to play a part in expanding the social gift market and increase brand recognition. Furthermore, to improve customer convenience, we are considering introducing QR code payments such as PayPay (Online Payment) and au PAY (online payment), and plan to expand payment methods.

Message from SB Payment Service Sales Representative

中野 美玖

As the demand for e-commerce is increasing due to the coronavirus pandemic, and the problems faced by e-commerce merchants are also increasing, we asked KC to introduce AI fraud detection, which has resulted in a reduction in chargebacks. I'm glad that I've gotten used to it." I would like to work with KC to tune the rule settings so that AI fraud detection can be effective even during busy event seasons such as Christmas, Valentine's Day, and White Day. We will continue to work hard to ensure that you can use EC with peace of mind, and to provide support in resolving any other issues that may arise.

SB Payment Service Corp.
Sales Headquarters Sales Department 4 Western Japan Sales Division
Miku Nakano

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Customer profile

company name KCC Co.,Ltd.
Service name Otaru Western Confectionery Shop LeTAO
URL https://kcc-co.jp/
KCC Co.,Ltd.KCC Co.,Ltd.